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2014 (10) TMI 143 - AT - Income TaxChallenge to the order passed u/s 143(3) pursuance to the direction passed by DRP u/s 144C(5) - Speaking order - Power of DRP to remand - Income from providing services in relation to 3D seismic data acquisition and processing - Applicability of section 44BB - AO was of the view that the income to be taxed u/s 9(1)(vii) read with section 115A - Held that:- Provisions of section 144C provides the entire mechanism for making a reference to the DRP - the statute has provided sufficient powers to the DRP for considering all the material placed before it and equipped it with vast powers to conduct enquiry before issuing any direction to the AO - The statute contemplates that after empowering the DRP, with such wide powers the DRP shall give clear and speaking directions to the AO for passing the assessment order and the statute ensures that the said power is not delegated to the AO. - The wide sweeping powers vested in the DRP in order to ensure that remand is not made. Thus, the order of the DRP is in excess of jurisdiction and the challenge posed to the same by the assessee is well founded - the AO is directed to pass a speaking draft assessment order considering the fresh evidences admitted by the DRP and calling for whatever evidences the authority deems fit – the order of the DRP is set aside – Decided partly in favor assessee.
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